Consulting Charges

By eweek  |  Posted 2003-11-17 Print this article Print

But youre not monetizing that. Were not charging for that consulting up front, no.
Is that something youd be interested in?
Its actually not a bad idea and something we should think about. (Laughs) Ill tell you what the SMB customer wants. They want a relationship. And they want someone they can rely on. But theres not a program in place where youll walk through a potential customers office. Well go and do a site survey. We do site surveys right now. And thats free? Yeah. Is your focus on the SMB market an admission of sorts that, for whatever reason, Gateway couldnt penetrate the enterprise? No, I think we just see a bigger opportunity with the SMB marketplace. I mean weve been focused and have had multiple SMB plans over the years that have had varying degrees of success. Its not an easy thing to really hit our market because it is very fragmented. The white box people have very strong relationships with these customers in a lot of cases. And its harder to find something that is scalable and replicable to cover such a big market as the SMB. But it ties more with our brand and more with our product strategy and our product capabilities and just where we are in the overall general business market. You reaped savings of $70 million in Q3, and expect to save about $95 million in Q4. Where will that come from? A lot of it is from our new distribution logistics model, a brand-new whole service model thats been put in place. Through product designs; its the service side. Its everything on a cost-to-goods, which is everything from material costs to manufacturing costs, to the way we cover our fixed costs. Weve taken a lot of fixed cost out of the business. So, kind of across the board. You closed another manufacturing plant earlier this year and are left with the original plant in North Sioux City. Given the attachment you have to that area, and the impact youve had personally on the area, can you imagine ever seeing that close? No. We have a lot more than just manufacturing there. We have a lot of sales there. They really understand the business. Though weve scaled that facility back, we still have a lot of people there. Its kind of a nerve center of Gateway, from an operational standpoint and a sales standpoint. Next page: AMD vs. Intel chips.


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